Good morning, everyone. The UAE’s détente with Iran has come to an abrupt end, with the fallout coming at a less-than-ideal time. We take a look at what the UAE’s response means and what analysts are keeping an eye out for.
The aviation sector is also still feeling the knock-on effects of the war. UAE airfares could stay elevated through much of 2026, and Gulf hubs are exposed to longer flight paths, thinner capacity, and higher fuel costs.
On the energy front, Adnoc is trimming spot sales to Asia by around 5% for August and September in a move that has already pushed Murban premium higher. Space42 is also looking to its international business to bring in a higher share of revenues amid a wider target to double its top line by 2030.
Adnoc to trim Asia sales
Adnoc is trimming spot sales to Asia — and Murban is already pricing it in. Abu Dhabi’s state oil company plans to cut the volume of crude it sells to Asian customers in August and September by around 5%, Bloomberg reports, citing people it says are familiar with the matter. The cuts affect only over-the-counter spot cargoes and follow maintenance at some onshore oil fields, one source said. Physical barrels traded through ICE Futures Abu Dhabi are unaffected, but the move has pushed Murban’s premium higher.
Why it matters: Murban is Adnoc’s flagship grade and a reference price for Asia’s sour crude buyers. It’s a sign of tighter supply and a shift from earlier this summer, when Adnoc used Hormuz-related disruptions to gain market share. The UAE’s share of Middle East crude shipments to Asia rose to 32% in June and 27% in July, up from 20% a year earlier, according to Kpler data cited by Baird Maritime.
BACKGROUND- Adnoc has sold more than 108 mn barrels of spot crude to Asian refiners across eight tenders since June, with recent cargoes fetching premiums of up to USD 10.5 / bbl over Dubai. The sales have continued even as Hormuz traffic has thinned sharply — just five commodity vessels crossed the strait last weekend, down from 31 the weekend before — following attacks on three Adnoc-operated tankers in the strait this month.
Space42 targets revenue growth from int’l business
Space42 is looking to scale its business as demand grows for satellite connectivity and geospatial intelligence, Managing Director Karim Michel Sabbagh told AGBI. The space tech firm is aiming for a greater revenue share from commercial activity, as its current top line is skewed toward government business.
It also expects the international share of its top line to reach a third by 2030, as its UAE business currently accounts for 90% of total revenue.
The Iran war has been helping business in a way by underscoring the need for stronger alternatives to terrestrial options for critical infrastructure operators.
PSA
WEATHER- Temperatures are going down slightly to highs of 40-41°C in Dubai and Abu Dhabi, but it still feels closer to 48-49°C, according to our favorite weather app. Temperatures will cool to 31°C in Abu Dhabi and 32° in Dubai.
The big story abroad
The state of US debt has taken top billing on the front pages, after reaching a record USD 40 tn — rising by USD 3 tn over the past year, the fastest ever pace excluding the pandemic years. Rising spending on social programs and interest, compounded by tax cuts, is stoking investor fears of an impending US fiscal crisis. The US Treasury stepped in with measures for long-term bonds, offering some relief to global investor jitters over surging yields.
Over in Silicon Valley, semiconductor group Marvell will help Google develop in-demand custom chips, and has offered the tech giant the right to buy up to USD 12.2 bn in Marvell shares. Companies are turning to in-house chips like Google’s Tensor Processing Units for cheaper AI inference compared to costly Nvidia GPUs.
And in Asian markets: South Korean memory chipmaker SK Hynix announced plans to buy back KRW 40 tn in stock, a move to stabilize its stock price following a steep two-month decline of over 50%. Analysts view the measure as an effort to appease local retail investors upset after new share issuances for the company's US listing diluted their holdings.
In the defense space: JPMorgan Chase co-led a USD 1 bn funding round for missile-making startup Castelion, alongside Andreessen Horowitz and Carlyle. The fresh capital will fund the development of a larger hypersonic strike weapon and a mass-produced air missile defense, signaling blue-chip interest in the booming defense sector.
Meanwhile, in Hollywood: BlackRock’s HPS and Oaktree Capital Management have seized MBS Group, a firm specializing in lighting and rigging for Hollywood films, erasing as much as USD 900 mn in debt. The firms converted debt into around USD 100 mn in equity and agreed to invest USD 40 mn more in the global entertainment provider.
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